What is the balanced scorecard approach in business?

As the name suggests, the balanced scorecard approach is an attempt to create balance when evaluating business performance. It's used in business, especially in planning. It's important because previous tools often left out one more aspect of a business; they tended to track only financial issues, or only customer response, etc. This approach integrates financial data, customer response, an emphasis on learning, and evaluations of internal processes. Ideally, each area is evaluated not just on its own, but in relationship to other areas: internal processes are evaluated for effects on customers, finances, etc. This allows managers to take all aspects of a business into account when making decisions.